Japan is one of the world’s largest economies and home to cutting-edge innovation, a highly educated population, and strong global influence. Whether you’re an entrepreneur seeking new markets or a foreign resident with a business idea, starting a company in Japan can be a rewarding move—but it requires careful planning and understanding of local laws and procedures.
This guide outlines seven key steps to starting a company in Japan, complete with legal insights, tips, and what to expect throughout the process.
1. Choose the right type of company structure
When starting a company in Japan, you must choose a legal structure. The two most common types for foreign entrepreneurs are:
- Kabushiki Kaisha (KK) – A joint-stock company, similar to a corporation. This is the most reputable structure and preferred by investors.
- Godo Kaisha (GK) – A limited liability company similar to an American LLC. It’s easier and cheaper to set up and maintain.
A KK is often more suitable if you need to raise outside capital or gain trust from Japanese clients. A GK is ideal for smaller operations or if you’re running a solo business.
Reference: Japan External Trade Organization (JETRO) – Guide to Setting Up Business
2. Secure a Japanese address for registration
You cannot proceed with starting a company in Japan without a registered address. This doesn’t have to be a large office; it can be a virtual office, a shared space, or a home address (if zoning allows).
Keep in mind that the address must be in Japan, and you’ll need to provide a rental agreement or proof of usage to register the company. Many startups opt to use coworking spaces like WeWork Japan or Regus to fulfill this requirement affordably.
3. Open a bank account in Japan
Opening a business bank account is a necessary step when starting a company in Japan, but it’s one of the most challenging parts—especially for foreigners.
You’ll usually need:
- Proof of residence in Japan
- A personal bank account in Japan
- Your company’s registration certificate (after the company is formed)
Some banks require Japanese language fluency or a Japanese representative. Using a bilingual accountant or incorporation service can help smooth the process.
4. Prepare articles of incorporation
The Articles of Incorporation (teikan) outline your company’s name, objectives, location, stock information, and more. For KKs, you must notarize these documents with a public notary (koushounin). GKs do not require notarization.
These documents must be written in Japanese or accompanied by a Japanese translation, and incorrect filings can delay or cancel your registration.
This is where hiring a judicial scrivener (shihoushoshi) or legal professional is strongly recommended.
5. Deposit capital and register the company
To continue starting a company in Japan, you’ll need to deposit the startup capital into a personal bank account temporarily and use that to prove capital formation. There’s no minimum capital requirement, but even a small amount like ¥1 is legally acceptable—though in practice, ¥500,000 to ¥1 million is more common.
Next, file the application at the Legal Affairs Bureau. Required documents include:
- Application for registration
- Articles of Incorporation
- Proof of capital deposit
- Seal registration certificate
- Personal identification documents
Once approved, your company receives a Corporate Number and is officially recognized as a legal entity.
6. Register for taxes and social insurance
After your company is established, you’re not done yet. Starting a company in Japan also means registering with various government offices:
- Tax Office (Zeimusho) – Submit notifications about the company’s establishment, tax status, and accounting periods.
- Labor Standards Office – Required if you’re hiring employees.
- Pension Office – Register for social insurance programs, even if you’re only employing yourself.
Failing to register for taxes properly can result in fines or legal issues. Working with a bilingual accountant familiar with Japanese tax law is highly recommended.
Reference: National Tax Agency (NTA) – Tax Procedures for Setting Up a Corporation
7. Apply for business licenses (if required)
Depending on your business type, additional licenses may be needed. For example:
- Food and beverage businesses need a restaurant license
- Real estate businesses must register with the Ministry of Land, Infrastructure, Transport and Tourism
- Financial companies may need FSA approval
When starting a company in Japan, be sure to research whether your industry is regulated. JETRO offers detailed guidance for different sectors.
Bonus tip: Get a business manager visa
If you’re a non-Japanese national without permanent residency, you’ll need the Business Manager Visa to legally run your company. Requirements include:
- A physical office space (not just a virtual address)
- At least ¥5 million in capital
- A business plan in Japanese
- Proof of sustainability and employment plans
You can apply for this visa after the company is registered. Many foreign entrepreneurs use a visa agency to improve their chances of approval.
Pros and cons of starting a company in Japan
Pros:
- Access to a high-income, tech-savvy market
- Global reputation and trusted legal system
- Government support for foreign entrepreneurs (via JETRO)
Cons:
- Language and bureaucracy barriers
- Difficult banking and visa procedures
- Conformist business culture may be slow to adapt
Still, with the right support, starting a company in Japan is achievable and rewarding.
Final thoughts
Starting a company in Japan is not a walk in the park, but it’s far from impossible. With proper planning, the help of legal and tax professionals, and a clear business plan, foreign entrepreneurs can break into one of Asia’s most desirable markets.
From tech startups in Tokyo to food businesses in Osaka, Japan is filled with opportunity for those willing to do their homework and navigate the red tape.
Let your journey begin—Japan might just be the perfect place to turn your business dream into reality.
